Weekly Price Action Setups & Key Levels | May 1-6
XAUEUR – Holding Current Long, 1160+ Next Upside Target (daily chart)
As I’ve talked about in my recent market commentaries, I’ve been bullish and long on Gold vs. the Euro. I’m currently running two longs at 1100 and 1105, currently up about +230 and +270 pips respectively (see image below).
Now that we’ve cleared the 1125 resistance, this puts 1150 and 1160 into context as the next upside targets. I’m suspecting bulls will take some profit here so a likely pullback.
But unless the price action context changes massively, I’m maintaining a bullish bias while above 1064 on a daily closing basis.
Beyond 1160+, there is 1200 and 1250 so am willing to hold for the latter targets as I suspect gold will continue to gain vs. the USD and EUR.
Traders not currently long can look for pullbacks into 1100 and 1080 for potential buying opportunities.
USDJPY – Key Structural Break, Bearish Bias (4hr chart)
After rallying from the mid-107’s for most of April, the USDJPY pair stalled out at 112 double-topping and selling off after the BOJ decided to be less enthusiastic about easing in the future. The result was a 500+ pip drop, and in doing so, the pair broke a key structural support at 107.66.
For now my bias on the price action is bearish both short term and medium term. The nearest key resistance comes in around 107.66 so I’ll be looking to sell on pullbacks. Only a daily close above 108 negates my ST & MT bearish bias.
Downside I’m looking for a test of 105 and 100 within this year, perhaps even by the end of Q2.
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